Pembina, Kineticor sign Greenlight land purchase deal

Executive Summary

• Pembina Pipeline and partner Kineticor provided a progress update on the proposed 1,800 MW Greenlight electricity centre in Sturgeon County, Alberta.
• Key commercial milestones were achieved: AES‑OS large‑load allocation of 907 MW secured, demand transmission service agreement signed, $190 M land purchase agreement pending Q4 2025 closing, and turbine reservation agreements executed.
• The project targets a first‑phase start‑up by 2030 with a final investment decision expected in the first half of 2026, contingent on energy supply and EPC contracts.

Key Details

• Project Scope: Multi‑phased, gas‑fired combined‑cycle power plant; up to ~1,800 MW capacity; first phase ~900 MW.
• Natural Gas Demand: First phase will require ~160 MMcf/d of natural gas; potential to double to ~320 MMcf/d at full 1,800 MW capacity.
• AESO Allocation: Secured 907 MW allocation in Phase 1 of the Alberta Electric System Operator large‑load process; allocated to a prospective customer.
• Grid Connection: Customer entered a demand transmission service agreement with AESO for 907 MW, enabling connection to the provincial grid as early as 2027.
• Land Transaction: Conditional purchase and sale agreement for land (including power connection) valued at approximately $190 M (net to Pembina); expected closing Q4 2025; proceeds to be partially reinvested in project development, remainder to reduce debt.
• Equipment Reservations: Reservation agreements signed for two turbines with a reputable OEM, providing certainty on equipment availability and delivery timing for Phase 1.
• FID Timeline: Target final investment decision (FID) in H1 2026, subject to execution of an energy supply agreement and EPC contracts.
• Strategic Fit: Extends Pembina’s value chain into power generation, creates incremental natural gas demand, diversifies customer base, and leverages existing Alliance pipeline for potential gas supply.

Notable Quotes

• “Greenlight is making great progress on all the pieces required to successfully bring to fruition one of the largest power projects in Canada while supporting the significant load growth coming to Alberta,” – Andrew Plaunt, CEO, Kineticor.
• “Through their combined efforts, government, industry and local stakeholders can capitalize on a multibillion‑dollar investment opportunity that will create jobs, foster innovation and grow the economy,” – Scott Burrows, President & CEO, Pembina Pipeline Corp.